Kalderos Commercial Discount Monitoring Solution
Finding Sources of Revenue Leakage
Drug manufacturers paid around $115 billion in commercial rebates to pharmacy benefit managers (PBMs) in 2022. But at least 5% of these commercial rebates are likely duplicated with 340B discounts, based on a current analysis of data in the Kalderos Drug Discount Management platform. This amounts to annual revenue leakage of $6 billion for drug manufacturers. To complicate matters, the eligibility of duplicate discounts for rebates varies by contract, creating the kind of confusion that leads to manufacturers paying some rebates unnecessarily.
The Kalderos Commercial Discount Monitoring solution, whose refresh was announced in September 2023, helps drug manufacturers better understand sources of revenue leakage and gives them more data to negotiate commercial contract strategies with Caremark, Express Scripts, OptumRx, and other PBMs. The software leverages cloud-based data and analytics with integrated detection of 340B duplicates and other contractually ineligible rebates across commercial discount programs. This enables customers to gain actionable insights into the terms and performance of their contracts.
Furthermore, the solution’s extensive proprietary validations enable customers to identify six times more noncompliance than conventionally applied datasets. Plus, its Contract Performance Analytics provides deep understanding of the impact of ineligible rebates on contract performance. This not only allows drug manufacturers to better negotiate contracts with PBMs, but it also enables them to effectively enforce contract terms across private payers. And by quickly determining the worst-offending contracts for ineligible drug discounts, manufacturers can implement a strategy to fix them. One other benefit of the platform: it gives drug manufacturer accounting teams the data-supported knowledge needed to make informed forecasts and optimize spending.
